Buffett's 2023 Letter: Berkshire Hathaway Sticks to U.S. Stocks, Snubs Crypto

Warren Buffett, the renowned investor and CEO of Berkshire Hathaway, has released his annual shareholder letter, revealing the company's investment strategy for the coming year. In the letter, Buffett emphasized that the majority of Berkshire's funds will continue to be allocated to U.S. stocks, with no mention of cryptocurrencies.

Buffett stated that while some analysts view Berkshire's large cash holdings as unusual, the company remains committed to investing the majority of its funds in equities. Although Berkshire's holdings in publicly traded stocks decreased from $354 billion last year to $272 billion, the value of its privately held businesses has increased and still far exceeds the value of its stock portfolio.

Buffett reassured shareholders that Berkshire will continue to allocate the majority of their funds to stocks, primarily U.S. stocks with significant international operations. He emphasized that Berkshire will never favor holding cash equivalents over owning great businesses, whether in full or in part.

In the letter, Buffett also discussed Berkshire's currency management strategy. The company has been consistently increasing its borrowings denominated in yen, but not following any fixed pattern. All borrowings are at fixed rates, with no "floating rate" borrowings. Buffett stated that he has no idea what the future exchange rate movements will be, so the company seeks to maintain a position that is approximately neutral with respect to currencies.

Notably, this year's shareholder letter did not mention cryptocurrencies, indicating that Berkshire Hathaway continues to focus on traditional investment strategies.